International Oil prices have soared following a deal by OPEC countries to limit production. The Organization of the Petroleum Exporting Countries (OPEC) produce about a third of the world’s oil. OPEC has agreed to cut production next year by about 4.5 percent, or 1.2 million barrels a day. It will be the first cut in eight years. With the prospect of less pumping, oil prices, which began rising early Wednesday, in anticipation of the deal, were up more than 8 percent. In addition to the production cut by Opec members, non-Opec countries will be expected to reduce production by 600,000 barrels a day. The OPEC President did not announce which countries these might be, beyond saying Russia was prepared to cut 300,000 barrels from its output of more than 10 million barrels a day. Opec will hold talks with non-Opec producers, like the US and Russia, on 9th December. The fall out for non oil producing countries will mean higher costs for petroleum products like gas and LPG. Already fuel prices have been on the increase in St Lucia. This will mean even higher prices for St Lucian consumers given that St Lucia does not produce, but rather imports oil. Prices of petroleum products ranging from gas, diesel and LPG cylinders are determined by the international cost of imported crude oil.
